Question No 45 Chapter No 18 – USHA Publication 11 Class

Question No 45 Chapter No 18

Question No 45 Chapter No 18

Goods are withdrawn for business and personal use

45. The following is the trial of Chris Gayle as at 31st March 2018:

Ledger AccountsDr. Ledger AccountsCr
Input IGST 16,000Capital80,000
Input CGST8,000Return Outward7,000
Input SGST8,000Creditor15,000
Purchases4,16,000Sales5,25,000
Debtors50,000Bank overdraft17,000
Sale return6,000Output IGST9,000
Opening Stock18,000Provision for Bad debts4,000
Cash in hand 30,000Commission Received18,000
Investment18,500Output CGST2,000
Furniture30,000Output SGST2,000
Machinery65,000  
Salaries20,000  
Carriage inwards3,000  
Bad debts4,500  
Lighting3,500  
Insurance Premium6,000  
Royalty on Production1,000  
 6,79,000 6,79,000

Prepare Trading and Profit & loss account for the year ending 31st March 2018 and balance sheet as at that date after considering the following adjustments:
(i)Stock on 31st March 2018 (cost Rs 45,000 ; Market Price Rs 45,000)
(ii)Goods returned by customer not recorded in sale return book (sale value Rs 8,000 plus 6% CGST and 6% SGST
(iii)Create Provision for bad debts @5% on debtors
(iv)Insurance premium includes premium paid for a year Rs 2,000 on a policy expiring on 30th June 2018
(v)Goods were stolen from the costing Rs 12,000( originally purchased at 6% CGST and SGST 6% ). The insurance company admitted a claim for Rs 12,500

 

The solution of Question No 45 Chapter No 18:-

Trading A/c
Particular
AmountParticular
Amount
To Opening stock A/c 18,000By Sale A/c5,25,000 
To Purchases A/c4,16,000 Less: return14,0005,11,000
Less: Return7,000    
Less: Goods Stolen12,0003,97,000By Closing Stock A/c 42,000
To Carriage Inward A/c 3,000   
To Royalty on Production A/c 1,000   
To Gross Profit A/c 1,34,000   
  5,56,000  5,56,000

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To salaries 20,000By Gross Profit A/c 1,34,000
To Lighting 3,500By Commission received A/c 18,000
To Insurance premium6,000    
Less: Advance Insurance5005,500   
To bad debts w/off4,500    
Add: new provision2,052    
Less: Old provision4,0002,552   
To Loss on goods stolen  940   
To Net profit A/c 1,19,508   
  1,52,000  1,52,000

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c80,000 Debtors 50,000 
Add: Net Profit1,19,5081,99,508Less: Sale return8,960 
Creditor 15,000Less: provision2,05238,988
Bank loan 17,000Cash at hand 5,500
   Investment 18,500
   Furniture 30,000
   Machinery 65,000
   CGST Recoverable 5,760
   SGST Recoverable 5,760
   IGST Recoverable 7,000
   Closing Stock 42,000
   Prepaid insurance 500
   Insurance Company(claim) 12,500
  2,31,508  2,31,508

Working Note:-
Calculation of GST

Output CGST on 31st March 2018=2,000
Less: CGST on goods return=(480)
 =1,520
   
Output SGST on 31st March 2018=2,000
Less: CGST on goods return=(480)
 =1,520
   
Input CGST on 31st March 2018=8,000
Less: CGST on goods stolen=(720)
  7,280
   
Input SGST on 31st March 2018=8,000
Less: CGST on goods stolen=(720)
 =7,280
   
Output CGST=1,520
Less: Input CGST=7,280
CGST payable=5,760
   
Output SGST=1,520
Less: Input SGST=7,280
SGST payable=5,760
   
Output IGST=9,000
Less: Input IGST=16,000
IGST Recoverable=7,000

Journal Entry of Accrued Rent

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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